As her party guests gape in shock and amusement, Krystal is horrified to realize that she is indeed standing naked in front of the entire assemblage. Upstairs in Josh's hotel room, JR snarls at a woozy Babe for reverting back to form with her usual slutty behavior. Tad finds Di sneaking around the fertility clinic after hours. After exchanging a passionate New Year's kiss, Kendall and Zach happily declare their love to one another. An incensed Babe assumes that Josh was responsible for undressing her and sliding her between the sheets but he insists she showed up uninvited. Though Adam berates his wife for shaming him in front of his friends and the board of directors, Krystal accuses him of slipping her a Mickey and stuffing her inside the giant cake to make her look like a fool. Di is tempted to reveal the truth about Dixie to Tad. JR icily informs Babe that he will never be stupid enough to fall for her lies again. Later, Josh swears to Babe he had nothing to do with drugging her and setting her up. Julia dares Ryan to go skinny-dipping with her to ring in the new year. Delighted with the results of her recent handiwork, Janet gleefully plots her next move. Ethan pops the question to an astonished Simone. Babe and Krystal confront Amanda with their suspicions. Tad and Di uncover Greg's disturbing stash of Erica Kane memorabilia. Erin and Aidan grow closer. Simone happily accepts Ethan's proposal.
Amanda catches Jamie snooping through her purse. Erica shakily confides to Tad the details of her nightmare about Greg. Later, Erica is startled to recognize a baby photo of herself when Tad displays the loot he removed from Madden's personal files. At the fertility clinic, Greg sternly accuses Di of rifling through his office during the holiday break. Zach and Kendall happily watch the sunrise from the beach as they build castles in the sand together. Babe crawls into her ex-husband's bed and coos to JR that she's ready to prove what a dirty little slut she is. As JR starts to respond, however, Babe abruptly pulls back and icily informs him that he's been wrong about her all along. Jamie invents an excuse to wriggle out of trouble with Amanda. Tad suggests to Erica that a perusal of her complete medical history could give them some clue about her past connection to Greg. Kendall explains to her delighted sister how she finally found the courage to declare her feelings to Zach. Meanwhile, Zach thanks a beaming Myrtle for inspiring him to fight for the woman he loves. Though Babe shows him the hospital's tox screen results proving that she and her mother were both drugged on New Year's Eve, JR refuses to believe her tale. At New Beginnings, Greg covers for Amanda after Erica demands to know who erased her taped interview with Geraldo Rivera. Tad protects Di from her suspicious employer by claiming that he alone was responsible for the break-in at the clinic. Erica is outraged to find herself on the cover of the "Exposer" along with a libelous story about her falling off the wagon.